The benchmark 10-year and 30-year Treasury yields rose on Friday on the prospects that an extended government shutdown could be looming.

U.S. President Donald Trump held his ground, saying that he would not sign a temporary government funding resolution, unless it included funding for a U.S.-Mexico border wall. President Trump has been seeking $5 billion of government funds to allocate towards building the border wall.

The 10-year yield ticked higher to 2.794, while the 30-year hit 3.036 as of 2:45 p.m. ET. Meanwhile, stocks were continuing to feel the effects of a rate hike by the Federal Reserve on Wednesday with the Dow Jones Industrial Average falling over 200 points.

The S&P 500 retreated 1.29 percent and the Nasdaq Composite fell 2.28 percent or just under 150 points.

Market Jitters for Christmas

Combined with the shutdown fears, trade wars and other factors, markets have been jittery ahead of Christmas, to say the least.

“The message people should take home, especially if there’s a government shutdown, is that longer term, the prospects for equities are not good,” said Komal Sri-Kumar, president of Sri-Kumar Global Strategies. “There are lots of signs now suggesting that we may be looking at a recession. I would say that the risk here is that a whole lot of confluence is taking place: The trade was is not going to end soon, and the Fed totally misjudged the market in suggesting two more rate hikes next year.”

The Fed did try to quell the capital markets with New York Fed President John Williams telling CNBC that the central bank does have a pulse on the latest bouts of market volatility.

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